Letter of Credit (L/C) also known as Documentary Credit is a widely used term to make payment secure in domestic and International Trade. Quite obviously, all payments in an International Trade are made through bank. Banks that are serving International Trade, understand the crucial role that they are required to play.
A key principle underlying L/C is that, banks deal only in documents and not in goods. It is impossible to be in International Trade without involving bank for all the services they provide. For result oriented and cost effective International trade, we need accurate and timely information and a sound knowledge of L/C for understanding of Export- Import Business.
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